Without a doubt, owning a home in today’s market can be quite financially burdening for many individuals and families.
Since 2012, Housing pricing have risen by approximately 52% and one of the main reasons behind these high costs is low housing supply compared to the demand. It’s no secret that high demand and low supply will only continue to help prices climb.
So how could this be tackled?
Well, the Provincial Government recently proposed legislature changes that include removing the requirement for local Governments to hold public hearings for some developments.
If approved, properties that already align with the Official Community Plan for that City or District can bypass this.
How does that make property cheaper?
We see two ways. #1 – Time is money! With the long process developers can go through, the holding and interest costs pile up and get tacked on to the end product – the home – and passed on to the end user – the buyer! So, by saving these costs, it reduces a developer’s cost and in turn the buyers. #2 – More Supply (quicker) – If we have more supply coming to the market quicker, this undoubtedly will help stabilize markets and help with affordability.
As this is projected to help relieve sky-rocketed housing costs in the foreseeable future if approved, there are some current implications stated by the BC government as follows to help support home buyers:
- Affordable Home Ownership Program delivered by BC Housing which supports the development of new, owner purchased homes for middle income households. https://www.bchousing.org/housinghub/programs-and-eligibility
- The Provincial Government is also working alongside partners within the non-profit sector, faith organizations, private sector, for-profit builders, all levels of government, institutions and indigenous peoples to help build the right supply of housing.
See more information on the BC Government website: Affordable housing actions – Province of British Columbia (gov.bc.ca)